Karl Hahn has been permanently banned from the financial securities industry in 2012 after several complaints were submitted to the FINRA officials regarding unscrupulous activities and forgery that this advisor had involved in. Hahn was employed in the private wealth management department of Deutsche Bank, which was a part of Deutsche Bank AG from 2008 to 2009. Karl Hahn resigned at Deutsche Bank to work with Oppenheimer and Company in 2009. As per the consent order filed in October 2011 by the New Hampshire Bureau of Securities, Hahn started his career with Merrill Lynch Pierce Fenner and Smith in 2004, and continued till 2008, after which he joined Deutsche Bank as a financial advisor. The consent order permanently bans Karl Hahn from selling financial securities products in the state.
In 2011, investors Michael Myers and Susan Myers filed a case with FINRA, alleging negligent supervision and civil fraud done by Hahn, among many other misdeeds, as reported by the ruling. The case particularly involved around the investors purchasing a risky life insurance plan whereby the policyholders pay premiums with loans that are usually bound with variable rates of interest. It is reported that Karl Hahn went to great extent to convince the investors for paying $1.9 million in the life insurance deal held outside of Deutsche Bank. He also advised the couple not to mention about this deal to anyone at the bank or other investors. He also didn’t mention that his father would get a large portion of the investment, almost $600,000, to be paid as commission.
The couple from Nevada has sought $2.2 million as compensatory damages, and almost more than $13 million for punitive damages. On the other hand, Deutsche Bank is undergoing major litigation procedures due to alleged misconduct by Hahn. According to the lawyer for Myers, the Deutsche Bank and Karl Hahn are to be blamed for such life insurance transactions, which caused substantial losses for the couple. However, FINRA panel has dismissed the case filed against Oppenheimer and Company where Hahn worked after resigning from Deutsche Bank.
